Key Points

The Nifty 50 index opened at 24,732.35, marking a modest gain of 13.75 points or 0.06 per cent. On the other hand, the BSE Sensex started the day slightly lower at 81,034.45, down by 84.15 points or 0.10 per cent.

Market experts said the Israel-Iran conflict is not expected to have a long-term impact on global or Indian markets. While crude oil supply remains under pressure and energy prices are elevated, the overall influence of the conflict on the global economy is seen as limited.

Ajay Bagga, a banking and market expert, told ANI that both Iran and Israel contribute less than 1% to global GDP and have a combined population of under 100 million.

"Two countries, separated by 700 km from each other, are causing a major risk-off sentiment and global geopolitical turmoil. As with the short-lived impact of the Gaza conflict, markets will shrug off the Israel-Iran conflict this week and move on, as the boundaries get defined and the risk of a regional war recedes," he said.

He added that with Russian President Vladimir Putin offering to mediate and U.S. President Donald Trump signaling hopes of a peace deal, markets across the world are beginning to calm. However, risks remain, especially if instability in Iran affects shipping through the crucial Strait of Hormuz.

Still, pressure from major oil-producing nations such as Saudi Arabia, UAE, Qatar, Kuwait, and Bahrain, along with big oil-consuming countries like China, India, Japan, and South Korea, may push Iran to avoid escalating the conflict further.

In sectoral trends on the NSE, Nifty Auto, Nifty IT, Nifty Pharma, Nifty PSU Bank, and Nifty Healthcare opened in the red. Meanwhile, Nifty FMCG, Nifty Media, and Nifty Metal showed slight gains.

Among broader indices, the Nifty Midcap index opened slightly in the red, while the Nifty Smallcap index was in green with a marginal gain.

"Nifty 50 did not perform well last week, remaining down by 284 points. The sector started bearish and ended the same way due to geopolitical reasons. The price currently did a breakdown below support, indicating a continuation of the downtrend in the sector. After forming a tight range for the last 20 days, its breakdown below support signals a reversal trend in the sector. Technically, it is trading above all key moving averages, further signaling more upward momentum," said Sunil Gurjar, SEBI-registered research analyst and founder of Alphamojo Financial Services.

Asian markets opened on a mixed note. Japan and South Korea posted modest gains of around 0.9 per cent, while the Hang Seng index was down by 0.08 per cent, Taiwan's Weighted index fell by 0.34 per cent, and Singapore's Straits Times lost 0.33 per cent.

Oil prices continue to remain elevated with a geopolitical premium of around USD 10. Gold prices are rising due to safe-haven demand.

Overall, sentiment remains cautious as markets try to assess the long-term impact of the Israel-Iran conflict, though experts believe it may soon be absorbed by the market.

- ANI